Inflation Watch, Apple iPhone 15 Reaction, Big Tech CEOs at Capitol Hill AI Forum 9/13/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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David Faber (0:31)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:36)

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla, David Faber at Post 9 of the New York Stock Exchange. Cramer's at One Market in San Francisco, fresh from his exclusive with Marc Benioff and Dreamforce last night. Futures are trying to bounce after that warmer than expected CPI. Couldn't quite get that two-tenths on core.

We will settle for three-tenths. Ten-year yield briefly pops to four-three-five close to the August highs. Our road map is going to begin with CPI, giving the Fed more to consider ahead of next week's rate decision.

David Faber (1:05)

Apple also in focus as Wall Street reacts to its launch event, including a new iPhone lineup.

Meantime, China insists it has not issued a ban on the company's flagship product. Plus, we're going to get into all things AI from major tech CEOs meeting with lawmakers today on Capitol Hill to what Salesforce's Marc Benioff told Jim about that technology.

Carl Quintanilla (1:25)

Let's begin with CPI. Obviously, Core, a bit of a disappointment to the Bulls. Jim, gasoline is more than half of the headline, up 10, car insurance up two and a half, but lodging away from home down three.

Jim Cramer (1:38)

That's funny. I was listening to Steve Leeson break it down, and I totally agree with what Steve was saying. Of course, it's just empirical. There's nothing that says the gasoline and oil have necessarily trickled into the rest of the combination. We do know, it's funny, I've been talking with some of the major insurers who are using, believe it or not, artificial intelligence to actually get prices to where they are lower. And I wonder whether that won't filter in as part of a larger conversation about trying to get the best price for the consumer when it comes to these gigantic car insurance and auto finance companies. I suspect that those numbers are going to go down because of artificial intelligence. That may not be two years out, that may have to be next year. So I'm actually more sanguine on that. What I'm less sanguine about is we've got to see some numbers from companies go up about AI. And we haven't seen that other than NVIDIA.

And David, when we talk about AI, you know the stocks have all been up as if the numbers are going to be great. The pressure on Adobe tomorrow is so gigantic because someone's got to be able to raise numbers on AI besides NVIDIA. Can't just be NVIDIA.

David Faber (2:44)

But isn't it, maybe it's a bit too early to do that? When we talk about the products that are really going to come from generative AI and the revenues and or the productivity, it just may be a while, Jim.

Jim Cramer (3:00)

Not for banks because they have, well, he's called it Goldman. They had Deadwood. You spoke with David Solomon. He was more diplomatic than that. But some firms can really start trimming immediately.

But they'll do it through attrition, David. You're absolutely right. They won't fire. They'll just not hire people. But you know, in terms of like making numbers move up, what I think is most daunting is what happened with Oracle.

And I wanted to buy what would be frozen now from our travel trust. Oracle's got Oracle World next week. I think they're gonna lay out a pretty good AI strategy. But they didn't raise.

And unless you raise like Nvidia, then it's disappointment. And David, that means there's a lot of disappointment ahead. It worries me pretty quickly in light of what we know about arm holdings and how that stock is going to come in way too hot now, as we know in the last 48 hours.

David Faber (3:46)

You think it's gonna come in way too hot?

Jim Cramer (3:47)

It's gonna come in. I was hoping for 50 billion. David, I'm hearing 60, 70 billion. I can't get that.

David Faber (3:52)

You think that I don't know if they're gonna get to that. Really? I mean, where are they gonna press somewhere? These anchor tenants.

Jim Cramer (3:57)

But the anchor tenants are not strategic. They're strategic. They don't care about valuation, right? And they're bidding the thing up.

David, it can't come in worth of 50 billion. It makes sense.